RuralStruc Household Survey 2007-2008

Kenya, Madagascar, Mali, Mexico, Morocco, Nicaragua, Senegal, 2007 - 2008

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Reference ID

WLD_2007_RSHS_v01_M

Producer(s)

RuralStruc Program Coordination Team

Collection(s)

Fragility, Conflict and Violence

Metadata

DDI/XML JSON

Created on

Jun 16, 2011

Last modified

May 24, 2021

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57414

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1/ Herfindal Hirshman Index (Index_InverseHHI)

Data file: RuralStruc Merged_v1.0

Overview

Valid: 7269

Invalid: 0

Minimum: -2.22e-16

Maximum: 1

Mean: 0.227

Standard deviation: 0.202

Type: Continuous

Decimal: 0

Width: 10

Range: -2.22044604925031e-16 - 1

Format: Numeric

Questions and instructions

Literal question

See imputation and derivation.

Description

Definition

The diversification index (1-HHi) is defined as the opposite of the Herfindahl-Hirschman Index (HHi).
The definition of the index is the following: XXXX where i represents the different income sources (on-farm, agricultural wages, non-agricultural wages, self-employment, public transfers, private transfers, rents), n the number of income sources, and P the percentage of every income source.
Because the HHi squares the shares (i.e. the shares of income sources), it strengthens the main pattern of the household. It ranges from zero (entirely specialized) to one (highly diversified).

Imputation and derivation

Derivation

A commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in a market, and then summing the resulting numbers. The HHI number can range from close to zero to 10,000. The HHI is expressed as: HHI = s1^2 + s2^2 + s3^2 + ... + sn^2 (where sn is the market share of the ith firm).

The closer a market is to being a monopoly, the higher the market's concentration (and the lower its competition). If, for example, there were only one firm in an industry, that firm would have 100% market share, and the HHI would equal 10,000 (100^2), indicating a monopoly. Or, if there were thousands of firms competing, each would have nearly 0% market share, and the HHI would be close to zero, indicating nearly perfect competition.

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